CONCORD, NH - - Today, in the New Hampshire State Senate by a vote of 14-9 payday loans were put out of business beginning January 1, 2009. House Bill 267 capped the interest rate at 36% making it impossible for retail style payday loan companies to do business in New Hampshire. With the new imposed cap 200 jobs will be eliminated along with 59 million dollars in revenue it brings into the economy.
“The top two priorities for New Hampshire residents are, overwhelmingly, jobs and the economy,” began State Senator Ted Gatsas (R-Manchester). “Instead of listening, the majority of the Senate ignored the wishes of the electorate and only perpetuated the downturn of the New Hampshire economy eliminating an entire industry from the New Hampshire economy.”
Senate Republicans provided a compromise that included the following: capping the rate per $100 on a 14 day loan at $12.50 from $20, a loan limit of 25% of monthly income, only one loan may be taken at a time, a cooling off period for 30 days after 5 consecutive loans, a 60 day extended payment plan, a newly created credit counseling education fund and an inter-lender database to ensure that multiple loans could not be taken. The compromise amendment was defeated by a vote of 14-9.
“The ball is in the Governor Lynch’s court. He has to decide if putting New Hampshire citizens out of work is the right thing to do? He must ask himself; can this economy afford to lose the revenue this industry brings to New Hampshire. There are a lot of people looking to the Governor for leadership; I certainly hope he’s willing to provide an answer rather than walking away. Now is not the time to turn his back on New Hampshire taxpayers. These are tough times and the future is not looking any better,” Senator Jack Barnes (R-Raymond) concluded.
HB 267 heads back to the House of Representatives for a concur or non-concur motion.